With a one year PEG ratio of 0.22, DXC Technology Co is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than just 4.38% of US stocks.
With a price/sales ratio of 0.21, DXC Technology Co has a higher such ratio than just 9.45% of stocks in our set.
Over the past twelve months, DXC has reported earnings growth of -358.44%, putting it ahead of only 5.21% of US stocks in our set.
Stocks that are quantitatively similar to DXC, based on their financial statements, market capitalization, and price volatility, are PRSP, HFC, TIPT, AA, and RFP.
DXC's SEC filings can be seen here. And to visit DXC Technology Co's official web site, go to www.dxc.technology.
DXC Technology is the spin-off of Hewlett Packard Enterprise's enterprise services business referred to as Everett SpinCo and the immediate merger between said spin-off and Computer Sciences. The company is a leading provider of technology consulting, outsourcing and support services for infrastructure, applications and business process domains, including strategic enterprise service offerings of cloud, security, analytics, and data management.
DXC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for DXC Technology Co. To summarize, we found that DXC Technology Co ranked in the 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 695.67%. The most interesting components of our discounted cash flow analysis for DXC Technology Co ended up being:
25% of the company's capital comes from equity, which is greater than only 11.62% of stocks in our cash flow based forecasting set.
DXC Technology Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -12.68. This coverage rate is greater than that of only 7.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, DXC Technology Co experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DXC, try AVGO, TWTR, CTG, SMCI, and PFPT.
Executive Summary If you have never heard the story of the new CEO and three envelopes, you can read about it here (The CEO and the Three Envelopes - Kevin Kruse). Mike Salvino (Mike Salvino) became the new CEO of DXC Technology (DXC) and in his first nine months on...
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